HOME         WEBSITE         SUBSCRIBE           E-GREETINGS   
                               

Wednesday, March 04, 2009

Mirae Assets MF plans to launch Income Fund

Investment exposure will be in debt and money market instruments

Mirae Assets Mutual Fund has filed offer document with Securities and Exchange Board of India (Sebi) to launch new fund named as Mirae Assets Income Fund, an open-ended income scheme. The face value of the new issue will be Rs 10 per unit.

The investment objective of the scheme is to seek to generate income and capital appreciation through investments in a portfolio of debt and money market instruments.

The Scheme will offer three plans i.e. regular and institutional plan. These options will offer growth option and dividend reinvestment and payout option.

The minimum investment amount under regular plan will be Rs 5000 and in multiples of Re 1 thereafter and under institutional plan the minimum investment amount will be Rs 10 lakh and in multiples of Re 1 thereafter.

The scheme seeks to collect a minimum corpus of Rs 10 lakh during NFO period.

The scheme may invest up to 0-60% in money market instruments and debt instruments including securitized debt with residual maturity, repricing tenor not exceeding 1 year with low to medium risk profile. It will invest 40-100% in debt instruments including securitized debt with residual maturity, repricing tenor exceeding 1 year. The scheme may invest in securitized debt up to 50% of the net assets of the scheme. The scheme may also invest in offshore securities up to 25% of net assets of the scheme. The scheme does not propose to invest in equity and equity related securities. The scheme may invest in foreign securities up to 25% of the net assets of the scheme.

The scheme may invest in derivatives up to 100% of the net assets of the scheme for the purpose of hedging and portfolio balancing purposes. Money market instruments include, but are not limited to Treasury Bills, Commercial Paper of Public Sector Undertakings and Private Sector Corporate Entities, Term Money, CBLO, Certificates of Deposit of Scheduled Commercial Banks, Financial Institutions and Development Financial Institutions, Government securities with unexpired maturity of one year or less and other Money Market securities.

Debt securities include, but are not limited to, Debt Obligations of the Government of India, State and Local Governments, Government Agencies, Statutory Bodies, Public Sector Undertakings, Public Sector Banks or Private Sector Banks or any other Banks, Financial Institutions, Development Financial Institutions, and Corporate Entities, Securitised debt (asset backed securities, mortgage backed securities, pass through certificates, collateralised debt obligations or any other instruments.

The scheme will not charge an entry load.

Under regular plan, for purchase amount less than Rs 1 crore, the scheme will charge an exit load of 1.00% if redeemed before 365 days from the date of allotment. For purchase amount greater than or equal to Rs. 1 crore, the scheme will levy 0.25% if redeemed up to 15 days from the date of allotment.

Under institutional plan, for redemption done up to 15 days from the date of allotment, 0.25% will be exit load.

The performance of the scheme is being benchmarked to the performance of CRISIL Composite Bond Fund Index.

Murthy Nagarajan will manage the Fund.

Posted by

Blog Archive

____________________________________________________________________________________________

Disclaimer - All investments in Mutual Funds and securities are subject to market risks and uncertainty of dividend distributions and the NAV of schemes may go up or down depending upon factors and forces affecting securities markets generally. The past performance of the schemes is not necessarily indicative of the future performance and may not necessarily provide a basis for comparison with other investments. Investors are advised to go through the respective offer documents before making any investment decisions. Prospective client(s) are advised to go through all comparable products in offer before taking any investment decisions. Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the fund will be achieved. Information gathered & material used in this document is believed to be from reliable sources. Decisions based on the information provided on this newsletter/document are for your own account and risk.


In the preparation of the material contained in this document, Varun Vaid has used information that is publicly available, including information developed in-house. Some of the material used in the document may have been obtained from members/persons other than the Varun Vaid and which may have been made available to Varun Vaid. Information gathered & material used in this document is believed to be from reliable sources. Varun Vaid however does not warrant the accuracy, reasonableness and/or completeness of any information. For data reference to any third party in this material no such party will assume any liability for the same. Varun Vaid does not in any way through this material solicit any offer for purchase, sale or any financial transaction/commodities/products of any financial instrument dealt in this material. All recipients of this material should before dealing and or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice.


Varun Vaid, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/are liable for any decision taken on the basis of this material. All recipients of this material should before dealing and/or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice. The investments discussed in this material may not be suitable for all investors. Any person subscribing to or investigating in any product/financial instruments should do soon the basis of and after verifying the terms attached to such product/financial instrument. Financial products and instruments are subject to market risks and yields may fluctuate depending on various factors affecting capital/debt markets. Please note that past performance of the financial products and instruments does not necessarily indicate the future prospects and performance there of. Such past performance may or may not be sustained in future. Varun Vaid, including persons involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation in the financial instruments/products/commodities discussed here in or act as advisor or lender / borrower in respect of such securities/financial instruments/products/commodities or have other potential conflict of interest with respect to any recommendation and related information and opinions. The said person may have acted upon and/or in a manner contradictory with the information contained here. No part of this material may be duplicated in whole or in part in any form and or redistributed without the prior written consent of Varun Vaid. This material is strictly confidential to the recipient and should not be reproduced or disseminated to anyone else.


Varun Vaid also does not take any responsibility for the contents of the advertisements published. Readers are advised to verify the contents on their own before acting there upon.


Published Credits goes to following sources & all the mentioned sources as footer below the published material- Bloomberg, Valueresearch Online, Capital Market, Navindia, Franklin Templeton, Kitco, SBI AMC, LIC AMC, JM Financial AMC, HDFC AMC, The Hindu, Business Line, Personal FN, Economic Times, Reuters, Outlook Money, Business Standard, Times of India etc.